Mechanics liens have a superior priority to most claims in Title 11 Bankruptcy Law.
At the top of the list are customer deposits -- up to $2,000 per claim, IIRC.
Then comes IRS ... this is usually NOT income taxes ... instead the money is payroll withholdings, FICA, etc.
Normally this is small potatoes since the officers of the company are ALSO completely responsible for TIMELY payment. If the employer is substantial, the withholdings are due EACH WEEK, and for the big guys THE VERY DAY of payroll.
The taxes that can be a bother are real estate taxes. However any mortgage holder will cover them so as to retain clear title to their collateral.
Then comes lien claims -- mechanics liens -- which is what the law labels any of your bills for repairs or improvements IF you filled the appropriate paperwork.
Hence, the typical tradesman stands AHEAD of all of the unsecured creditors and can normally expect payment. It will take a while. Interest will accrue at some statutory rate, typically 6 to 10 percent per year.
So most of the above assumptions are too negative.
The biggest factor is performing the legal work yourself. It is easy. If you kick it out to an attorney -- you loose. I've never seen a bankruptcy attorney leave ANYTHING for the creditor -- his client.
